Navigation:  Loan Screens > Account Information Screen Group > ARM Information Screen > ARM Detail tab > Rate Information field group > Original Rate

Entry: User, numeric, 7 digits (not including the decimal)

F/M: Yes

Mnemonic: LNAMOA

Screen: Loans > Account Information > ARM Information > ARM Detail tab

 

This is the original note rate or the original fully indexed rate on ARM loans with a teaser rate. This field will be used in the rate change notice to the borrower if the notice requires the original note rate.

 

Original fully indexed rate means the full value of the current market index plus the Interest Rate Margin, at the time the loan is made.  For example, if the index rate is 4.5%, and the loan has a margin of 1%, the fully indexed rate would be 5.5%.

 

The Original Rate field is used to calculate the new interest rate if the Use This Base Index Rate field is checked.

 

This rate can also be used in the deferred fees and income calculations with amortization method 3 (interest method), depending on institution options.